FORMER Liberal MP Peter Shack drank himself stupid and went into clinical depression after attempts to stop his ex-wifes family from pursuing charges against him failed, the WA District Court heard today.

Mr Shack, who was the federal member for Tangney from 1977 to 1993, is accused of defrauding $100,000 from his mother-in-law’s estate and creating an invoice to cover his tracks. He denies the charge, claiming the money was loaned to him for an investment and that it was kept secret to prevent any family jealously.

On day two of the trial, Mr Shack told the jury that after he and his wife Pauline had separated he “pleaded with her” for six months to not go ahead with the claims.

He said he also tried to speak to his ex-sister-in-law Karen Jones to ask her to withdraw the charge but she would not see him.

“I foolishly drank myself stupid and went into clinical depression (after),” he told the court. “I received treatment from my GP and a psychologist.”

Mr Shack is accused of filling out a blank cheque, which was signed by his mother-in-law Mary Stasinowsky, then lodging the money into the joint business bank account he shared with his then wife.

He is also accused of creating a fake invoice to make it appear the money was for a property development Mrs Stasinowsky was already involved in.

Mrs Stasinowsky has dementia but didn't have the disease at the time of the alleged offence.

During his evidence, the 59-year-old almost broke down in tears several times when he spoke of the allegations that he effectively stole from Mrs Stasinowsky.

The former politician told the court that he loved his “mum” and rejected any suggestion he tricked her, then tried hide the deceit by creating the fake invoice.

“Of all the things that have been said about me, that has been the most offensive,” he said.

“I would have never stole from her (Mrs Stasinowsky). I loved her and respected her. She was my friend for 20 years…I would have never have done that.”

He also denied telling his ex-wife that Mrs Stasinowsky refused his loan request, saying she agreed to lend it to him after a “discussion."

The court was told Mr Shack and his ex-wife were involved with the Amway marketing company and were hoping to reach the Diamond level.

In order to help them achieve the Diamond status Mr Shack said he needed $100,000 for a business investment.

Mr Shack told the court when he approached Mrs Stasinowsky she initially refused saying she thought she was “running out of money” but that he knew she meant “black money”. When asked by his barrister Tom Percy what that meant, he explained it was cash, not the money tied up in her companies.

He then said after a further discussion she agreed to lend him the money provided it was a secret. He said he suggested the cheque stub be made out to a construction company but insisted it was Mrs Stasinowsky who wanted it kept secret.

When asked by the prosecutor Les Hobson why he kept it secret when the family first began asking questions about their mother’s estate, he said he had promised her he would never tell.

When asked why Mrs Stasinowsky never asked about repaying the loan after he received more than $200,000 from reaching the Diamond level, he said she never asked.

A NOTE ABOUT RELEVANT ADVERTISING: We collect information about the content (including ads) you use across this site and use it to make both advertising and content more relevant to you on our network and other sites.